Ginger Company claims its financial information is useful. What two qualities must be present in order to have "useful" accounting information? Explain these two qualities


To be useful, accounting information must be relevant and reliable. Relevant information has the capacity to make a difference in a decision. Reliable information can be depended on to represent the economic events that it purports to represent.

Business

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Business transactions are economic events that should be recorded in the accounting records

Indicate whether the statement is true or false

Business

At the end of the fiscal period, prepaid expenses are reported on the Income Statement as expenses

Indicate whether the statement is true or false

Business

HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product

Business

The parties to an offer are offeror and the offeree

Indicate whether the statement is true or false

Business